Britain is losing the battle to save the City

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Defeat over bank bonuses is just the start. Europe is determined to keep London’s hands off euro business

Britain’s defeat over the European Union cap on bankers’ bonuses is much more serious than it looks. For certain parts of the City, it is life-threatening.

Although ways will be found to mitigate the impact of the cap, it will harm the competitiveness of British banks and the City. But the defeat has broader significance. It highlights the weakness of Britain’s position defending the City in the bigger battle to preserve its status as the financial centre of Europe.

That status has long been a source of irritation and envy in other European capitals, particularly Paris. For years, there has